Senegal: Economic and Political Overview
After registering a decade of strong growth, the Senegalese economy was impacted by the Covid-19 pandemic but was amongst the minority of economies that managed to avoid recession. In 2023, domestic unrest and regional political tensions disrupted consumption and investment, affecting sectors like manufacturing, agriculture, and retail. As a result, economic growth was limited to +4.6%, still below pre-pandemic levels, according to the IMF. Senegal's economy showed resilience in 2024, with preliminary estimates indicating a real GDP growth of about 6%, driven by strong performance in the hydrocarbon sector. The IMF expects growth to accelerate to around 9% in 2025 driven by the development of the country’s hydrocarbon resources, before slowing to 4.9% the following year.
Concerning public finances, the authorities remain steadfast in their commitment to achieving fiscal consolidation objectives. However, the fiscal deficit reached 11.7% of GDP, while central government debt was preliminarily estimated at 105.7% of GDP by the end of 2024. Financing conditions have tightened due to constrained regional markets, delays in donor support, and greater reliance on expensive short-term external borrowing. These challenges underscore the need for a credible fiscal consolidation strategy. Moreover, in February 2025, the Court of Auditors' audit revealed significant revisions to Senegal's fiscal data for 2019–2023. The average fiscal deficit was revised upward by 5.6 percentage points of GDP, and central government debt increased from 74.4% to 99.7% of GDP by the end of 2023. These revisions primarily reflected previously undisclosed liabilities, including hidden loans equivalent to 25.3% of GDP. Following the discovery, the country’s authorities have expressed their intention to request a new IMF-supported program and are focused on implementing the revised Emerging Senegal Plan (PSE), whose objective is to promote strong and inclusive private sector-led growth through structural transformation and diversification, with a new emphasis on accelerating the domestic production of critical supplies through sectoral policies (IMF). Increasing revenue mobilization, rebuilding fiscal buffers, putting public debt on a downward path, improving the business environment, enhancing the social safety net, broadening access to quality education, addressing youth unemployment, and tackling financial system weaknesses are among the key challenges identified by the IMF. Meanwhile, inflation remained low in 2024, averaging 0.8%, fostering a stable price environment.
According to the World Bank, if PSE reforms continue, the poor layer of the Senegalese population would progressively be able to access high-growth or value-added sectors, such as horticulture or agricultural processing. In 2023, the unemployment rate of the country was at 2.8% (World Bank, ILO estimate). Several statistical studies conducted by the ANSD indicate that nearly 97% of economic units operate informally, with 96.4% of the active population engaged in the informal sector, encompassing both urban and rural areas. Overall, poverty (using the low middle-income poverty line) remained stable at around 36.3% in 2023 (World Bank), while the country’s GDP per capita (PPP) was estimated at USD 5,056 in 2024 (IMF).
| Main Indicators | 2023 (E) | 2024 (E) | 2025 (E) | 2026 (E) | 2027 (E) |
| GDP (billions USD) | 30.94 | 33.69 | 37.80 | 40.61 | 43.46 |
| GDP (Constant Prices, Annual % Change) | 4.6 | 6.0 | 9.3 | 4.9 | 5.2 |
| GDP per Capita (USD) | 1,703 | 1,805 | 1,972 | 2,061 | 2,147 |
| General Government Gross Debt (in % of GDP) | 81.2 | 84.3 | 80.5 | 81.0 | 81.5 |
| Inflation Rate (%) | 5.9 | 1.5 | 2.0 | 2.0 | 2.0 |
| Current Account (billions USD) | -5.82 | -4.27 | -3.13 | -2.39 | -2.29 |
| Current Account (in % of GDP) | -18.8 | -12.7 | -8.3 | -5.9 | -5.3 |
Source: IMF – World Economic Outlook Database, October 2021
Senegal is rich in minerals, especially phosphates and iron ore. The country is one of the world’s leading phosphate producers and has significant deposits of zirconium, titanium, marble, gold, and limestone, as well as several types of precious stones. Although only one-fifth of the land is arable, agriculture employs 21.6% of the workforce and contributes to 17.4% of the GDP (World Bank). Senegalese agriculture is highly vulnerable to climatic hazards and locust threats. The country’s main crops are peanuts, black-eyed peas, cassava, watermelons, millet, rice, and corn. Fishing is also an important source of revenue. According to FAO, the 2024 aggregate cereal production was forecast at 3.8 million tonnes, around 8% above the average of the previous five years.
The industrial sector contributes to 24.3% of the GDP and employs 22.3% of the workforce (World Bank). It is based essentially on the production of fertilizers and phosphoric acid - which is sent to India, as well as peanut processing (oil and cattle meal) and seafood processing (despite a growing depletion in resources). The most important industrial segment is food production, followed by textiles and chemical industries. Senegalese industries also produce construction materials, machinery, equipment, electricity, and water. Overall, the manufacturing sector is estimated to account for 15% of the country’s GDP. According to the National Statistical Office, in 2024, the combined revenue in the industrial sector increased by 5.3% compared to its 2023 level.
The service sector contributes 49.2% to the GDP and employs 56.1% of the workforce (World Bank). It benefits from the country's excellent telecommunications infrastructure, which fosters investment in tele-services and the Internet. This sector has been expanding steadily. Tourism has also been growing, particularly among European travellers: international tourist arrivals reached 96% of their pre-pandemic level during the period Jan-July 2024. Senegal is home to 26 registered banks. The country's banking sector has drawn several foreign institutions aiming to use Dakar as a base for regional expansion. These include Nigerian banks like United Bank of Africa (UBA), First National Bank, and Diamond Bank, as well as Attijari Bank and Bank of Africa from Morocco. While the largest commercial banks remain mostly French, their dominant position is increasingly challenged by new entrants such as Ecobank, UBA, and the merger of Attijari, CBAO, and Banque Senegalo-Tunisienne (data U.S. Trade Administration).
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 21.6 | 22.3 | 56.1 |
| Value Added (in % of GDP) | 17.4 | 24.3 | 49.2 |
| Value Added (Annual % Change) | 7.3 | 3.7 | 4.7 |
Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
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Latest Update: May 2025
